July 19, 2006
Regent Communications, Inc. (Nasdaq: RGCI) announced today that it has entered into a definitive agreement to divest 10 radio stations serving the Redding and Chico, California markets to Mapleton Communications for $17.5 million in cash. The announced transaction includes the following radio station assets: KNNN-FM, KSHA-FM, KRDG-FM, KRRX-FM, KQMS-AM, KNRO-AM, KFMF-FM, KALF-FM, KZAP-FM and KQPT-FM. The transaction is subject to receipt of all required regulatory approvals, which are expected to occur in the fourth quarter of 2006. At the close of the transaction, Regent will no longer have any broadcast assets in California.
Bill Stakelin, President and CEO of Regent, commented, “This transaction represents our commitment to maximizing the value of our portfolio to the benefit of our shareholders. We intend to use the asset sale proceeds to strengthen our existing radio station platform as recently demonstrated in Peoria, Illinois and Albany, New York, while seeking strategic acquisitions that offer attractive growth opportunities in the nation’s middle and small- sized markets. We would like to thank all of our employees in Redding and Chico, California for their years of dedication and service.”
Regent Communications is a radio broadcasting company focused on acquiring, developing and operating radio stations in middle and small-sized markets. Upon the completion of all announced transactions, Regent will own and operate 64 stations located in 13 markets. Regent Communications, Inc. shares are traded on the NASDAQ under the symbol “RGCI.”
George Reed and Tom McKinley of Media Services Group were the exclusive brokers in the transaction.